Why Warren Buffett Still Holds Coca-Cola (KO) Stock After 30 Years

TLDR

• Buffett holds 400 million KO shares, unchanged since the early 1990s, and will collect roughly $848 million in dividends from Coca-Cola this year alone
• KO pays a quarterly dividend of $0.53 per share, yielding around 2.5%, and has raised its dividend for 64 straight years — making it a Dividend King
• KO opened at $83.93 on Friday, near its 52-week high of $84.14, with a market cap of $361 billion
• Institutional ownership stands at 70.26%; QRG Capital Management added 76,998 shares in Q1, growing its position by 20.2%
• Wall Street holds a Moderate Buy consensus with an average price target of $86.88, implying modest upside from current levels

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Coca-Cola (KO) has been one of Warren Buffett’s most reliable income generators for over three decades, and 2026 is shaping up to be no different.

The Coca-Cola Company, KO

Buffett’s Berkshire Hathaway holds 400 million KO shares — a stake he finished building in 1994, when annual dividends from Coke totalled $75 million. This year, that same stake is expected to deliver around $848 million in dividends. That figure alone now exceeds what Berkshire originally paid to acquire the position.

KO stock opened at $83.93 on Friday, just below its 52-week high of $84.14. The stock trades with a P/E of 26.39, a 50-day moving average of $80.18, and a 200-day moving average of $76.72.

The company’s most recent quarterly earnings beat estimates. Coca-Cola reported Q1 EPS of $0.86, topping the $0.81 consensus by $0.05. Revenue came in at $12.47 billion, above the $12.24 billion expected and up 11.4% year over year. For full-year 2026, the company has guided for EPS of $3.24 to $3.27.

The quarterly dividend of $0.53 per share was paid on July 1st, representing a $2.12 annualized payout and a yield of around 2.5%. The payout ratio sits at 66.67%.

64 Years of Dividend Growth

Coca-Cola has raised its dividend for 64 consecutive years, putting it firmly in Dividend King territory. Buffett has been vocal about this in past shareholder letters.

“Growth occurred every year, just as certain as birthdays,” he wrote in 2022. “All Charlie and I were required to do was cash Coke’s quarterly dividend checks.”

That consistency is part of why institutional investors continue to hold the stock. Total institutional ownership stands at 70.26%. QRG Capital Management grew its position by 20.2% in Q1, adding 76,998 shares for a total holding worth around $34.8 million. Jump Financial lifted its stake by 450.5% in Q2. Osterweis Capital Management increased its holding by 548.2% in the same period.

Analyst Targets and Insider Activity

On the analyst side, the picture is largely positive. TD Cowen has a $90.00 price target on KO with a Buy rating. Morgan Stanley set a $89.00 target in June. JPMorgan raised its target from $83 to $85 with an Overweight rating, and Deutsche Bank moved its target from $83 to $86. The average price target across 16 analysts stands at $86.88.

Fifteen analysts currently rate KO a Buy, with one Hold. No Sell ratings are on record.

On the insider side, Chairman James Quincey sold 436,296 shares on June 5th at an average of $80.13, valued at roughly $35 million. EVP Jennifer Mann sold 100,000 shares on June 8th at $79.46. Both transactions were conducted under pre-arranged Rule 10b5-1 plans and were related to tax withholding on vesting equity awards.

Insiders collectively own 0.90% of the company.